tv Fast Money CNBC January 31, 2018 5:00pm-6:00pm EST
the company said recently changes it made to the news feed meant users spent less time on the mainframe. it's time for "fast money" now thank you for joining us on "closing bell. we will see you back here tomorrow for a whole lot more earnings "fast money" starts right now. i'm brian sullivan in once again for melissa. your traders on the desk, tim seymour, guy adami bitcoin under pressure there is something happening this week that could be about to take the crypto to the next level. we have got those details. plus, boeing's epic run rages on and could mean even more trouble for ge. we'll explain the connection. first we have to begin with technology earnings. two behemoths reporting numbers motels ago facebook and microsoft both coming in with beats however, the stocks are under
pressure as always we have full team coverage right here, gene munster monitoring the facebook call on the red phone. carter werth checking the charts on both the names as we speak. let us begin with facebook the stock down a couple percent after hours on top of a 40% gain over the past year, there has been a lot going on with facebook the growing concern over fake news changes some of its algorit algorithms daily users coming up a little bit better than expected not by much, what do you make of it. >> they need to get ahead of the political rankering in the coming months. mr. cook was ahead of the curve there. but does the valuation make as much sense as it did in the past numbers were fine. you mentioned active users maybe we are not seeing the same growth as we have in the past. that is to be expected
if people are spending less time, then the forward earnings rate doesn't make sense. that said, we were at 178, 179 a week ago it's not that catastrophic. >> here's my concern 2 billion monthly active users there are your numbers everybody that is on facebook may be already on facebook. >> right. >> we have got changes coming down people made a boatload of money in the stock if they owned it a couple of years, tim, is there still a reason to own facebook >> its valuation if you put a $92019 multiple on this, which i think a lot of people could easily do it is a $225 stock at 25 times earnings growing ad revenue 41, 42%, growing their top line in line this is at time when people are struggling, we will talk about microsoft in a second. great company doing a great job but their multiple only gets to a place where i think you have to raise some questions. there is nothing wrong with facebook's multiple. what is wrong is that sentiment
is as bad as the stock could be. qb -- >> there is an attack on big tech in some ways. congress the government. >> massive growth. they still -- >> how do they have massive growth. >> 61% growth. >> 2.8 billion people in the world. many don't have internet access. >> still able to make money off of it. wall street talks about monthly active users and the growth there. they are still making a ton of money. let's not make too much about how many active users. we know there is only so many people on the planet, only so many with a computer testimony cross section of those two with facebook, there are only going to be so many of those the growth is instagram and all the other properties they have i would not be afraid this quarter. it's not a terrible quarter. it just missed what everybody was expecting. that's an opportunity for me. >> i think you are right i think it has to do with how do they monetize the users they have that's when you think, they don't make a dollar on what's
app. they paid $22 billion for it they are going to have the figure out how to monetize those users on that platform same thing they did with instagram. when they bought it for $2 billion, and now it's worth $40 billion. i disagree with you on the sentiment front. obviously there is potential head winds >> the stock has -- the stock is down basically in seven ints months. >> right here's the thing i would say you have a company like google, you have facebook, you have apple and amazon they have absolute monopolies. if there is a bubble in any of these things it is a bubble in sentiment which there is in amazon, in microsoft, and not in facebook >> we agree to disagree. i think you are defending the stock, which is kind of what i was doing in saying that you
think sentiment is actually -- >> we can talk to carter about it we hit on it with apple earlier in the week. there is fundamentals hid head winds. fit has a reckoning as it relates to reg lugs because they are going away from spamming news and the news feeds and they are reconnecting with people and also opportunities the monetize ads on that, then the stock could be in the hurt locker. we have seen it in the last few years. when apple has performed -- >> you talk aboutgrowth. 2 billion active that's about all the people in the world that have stable internet access. are you saying there could be growth in frofts and revenue. >> of course. >> i was talking users you were talking profit. >> dan is pointing out at some point you reach the maximum number of users. >> and then you make money. >> make money from that. that is potentially the position
facebook is in >> operating margins are good, operating income is pretty good. >> right. >> they are not one of the tech companies figuring out how to it they are making real money. >> absolutely. >> they are making $19 a share $4 a couple years ago. messenger. instagram is cruising alone long and eating snap's lunch. there is nothing among here. there are more levers to full and a valuation to me that is stupid cheap relative to the peer group. >> not just cheap, stupid cheap. >> that's a technical term, i believe. >> welcome to "fast money. >> thanks buddy. i appreciate it. >> let's some instant analysis and get to carter who is at at that plasma. >> exciting stuff. here comes the sixth vote. good conversation, guys. here we have it. let's try to put the move in condition text so you see the number. call that 180 just to round it off. it's been up and down all the time
let's look at something. here is a chart of facebook since its ipo. and you can draw very clear lines. and the lines are like that. and i have got over here just for fun, levels. where the first line is, where the second, third, and fourth. what's interesting is is that the stock is trading essentially, again, call it 180, plus/minus, right back to the line that it was sitting on, which is earlier in the week, earlier in then mo it's eve down less than the applied move after earnings. my hunch is it's contained if it was really bad it wouldn't be this benign you stay the course if you are long and it's not that outsized a move to be worried about we also have this big fellow much bigger fellow yeah and that's essentially lunch i mean for a big name like that, that's also not a lot of movements. let's also put it in context
these charts were drawn before the news came out. let's put in the lines remarkab remarkably, this is from the shoot low in '09 look at what is going on here. it is sitting here up a penny, down a penny the truth is it was good the fundamentals, anyway, and the price action not that bad. i would say it seems very contained just on a here now base snis -- basis. >> okay. carter, would you rather facebook or microsoft? >> microsoft >> clear out cut didn't even debate it. didn't pause why? why so clear-cut >> well, there is the fact that microsoft has been the better performer in terms of relative strength to the market for the last six or eight weeks. it is also the better performer year to date it is beating the market it is beating tech as a sector and its damage is less than you see the damage in facebook
while they are both benign, this is less. i like this better. >> got it. gene munster on the phone with his airline. trying to get someone human on the phone to change his flight back to minneapolis. >> that's not what he is doing. >> come over to the desk, carter >> gene, don't worry about it. gene >> did we -- did anyone else do would you rather >> anybody here fundamentally disagree with carter werth clear-cut, microsoft, no debate smile' take the microsoft. if you look at the quarter -- i know the stock is selling off. it sold off half of what it gained during the day. made an all-time high during the day. if you look at their margins, they are improving operating margins are now 30%. good for them. 25 times forward earnings. reasonable for this company. would you rather i'm with cbw. >> i asked if someone would disagree with him, and you went
on a 30 minutes agree. disagree means to not agree. >> i have got the other side of this. >> thanks buddy. >> since they last reported they moved up two terms on their multiple with their peer group. sacha is a hero for doing what he is doing with his company at 24 times moving up with the peer group i have seen microsoft have as big a move as any big cap stock in the world >> that's two. dan is three >> when you have a stock like this, react, it's down marginally to a result that people weren't expecting is this stock at $95, is it a foregone conclusion it's going to tick $100 in the future >> percentage wise it's nothing. >> i understand that >> look at amazon acting this
well when the tape is that slpy. microsoft held up well you have to respect it. >> you know, if you said this i apologize. azure up 98% at what point do we worry? do we worry at all that microsoft is coming after amazon is is going to start beating amazon at its own aws game >> do you worry about -- do you think jeff bezos worries about that >> i worry about hair loss and weight gain. i don't worry about this stuff. >> you shouldn't worry about either of those. >> thanks buddy. >>. [ laughter ] you get 98 periods growth that's coming from somewhere. >> that's fantastic. if you think about where the parkt -- >> or it is a bigger pie they are competing with obviously is gunning for aws but they are competing with oracle, with ibm, the list of competitors. decentralized. >> it's not by father. >> here's the thing. you talk about who has more levers to pull and where is more growth coming from we can argue if they are taking
it from amazon or not. i don't think it makes a dent in amazon's stock price but that stock is going to be attractive. what if saatchi isgying something different, blockchain technology, maybe it is the azure platform maybe that changes the game. and for those reasons -- >> it is not a consumer story. it is an enterprise. >> maybe the growth is organic they are either stealing it from somebody else or growing the market. >> if you had to do a would you rather, microsoft is going the hold up better than facebook if you get an equity selloff i would say the odds of that are almost foregone. >> carter will you worried about technology at all, the sector. >> it's hoeding up relative to the market google acting well microsoft. intel just gapped up you see the names that are -- there is less risk there in many ways than there is in some of the more inflated areas of the cyclical complex.
>> off topic, what is the most inflated to you right now? >> i would say caterpillar and things like that other industrials. boeing, while it was good today, it didn't move that much on a great number. >> tim hates boeing. >> it is a long story. >> we are going to tell it. coming up, bitcoin has been stuck in a bit of purgatory. but there is something happening this week that might spark another leg to the crypto craze. we'll explain. plus, steve wynn under pressure as massachusetts gambling commission is ramping up its investigation it could cost the casino mogul billions of dollars. we have a special report. later on, ge, living on the edge a top analyst says that stock's fate may be sealed, and it could get booted from the dow. could bongei, tim's favorite stock but the final nail in ge we'll explain. much more on fast right after this from the hospital,patient is r the hospital must come to the patient.
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in this case, boeing on an epic run that had it soaring 118% this the past year ge down 46% in that same time. thank you. and today on a trading nation segment, deutsche bank analyst john inch said thanks to boeing's big beat, there is a chance that ge, the oldest company in the dow, could be booted from that index >> the way the dow committee works is they really don't want ge, which is at $16, the lowest share provides component of the dow, to be more than ten times smaller than the largest price component, which is boeing and after boeing's big numbers today, those numbers are in excess of 20 times. >> that was an interview with me does boeing's gain spell more pain with ge tim seymour are they related in any way? >> i don't think so. on some level we price ge to be out of the dow at some point boeing is its own story. an extraordinary story as extra storied it has been on
a move from 250 to 350 in six week's time, the operating cash flow at boeing they hit with $15 billion today. blew people away even with the best expectations. this is a story that true three challenges people, what's the multiple you should put companies at that are generating this kind of cash flow in this kind of environment. >> anybody think ge is value or a value trap >> we have been clear it's been a trap for some time i think even.50 i would consider it a value trap. there is still head winds. i think there is tremendous headline risk still out there that they don't even know that's coming down the pike six months ago, they valued ge between $11.50 and $15 i think there is a chance we see the 15 handle. and i think it has more to do with honeywell and not boeing. they have eaten ge's lunch at
every turn that will continue. >> if they do get kicked out of the dow at $15 or $13. you get that kind of gap down, that's the day you buy it. those are the best opportunities right there. >> i challenged the analyst john inch a bit i said ge has had it rough but its market half is three and a half times bigger that tn smallest dow company travelers it's still at $140 billion in market cap his rebuttal is that the difference in performance between boeing and ge makes ge at risk. anyone agree with that not just its own problems. it says it's dragging the dow down, and therefore has a chance to be booted >> that's going to kick you out of the club because it doesn't like its performance. >> that's his performance. >> sound like inch might be off by a mile. >> bk. >> i think it is an interesting story. i own a 50 basis point position
in ge in a portfolio, which to me is a toe hold on a company that i bought down around $20. it is a down more from that point but ultimately to me tsum of the parts, inthe assets are relatively cheap it's been a problem for the last month, but it's mostly other people's problems. i think they are figuring it out. it is not going to end tomorrow. but the energy assets were priced three months ago like most of energy assets were, as if they were going out of business. >> breaking news on e-bay. >> that's right. e-bay's shares going up about 5.7% after the company is in line on both the top and bottom lines. revenues are $2.61 billion in line with estimates and the eps was 59 cents on guidance seems like both for q 1 and full year the eps came in above estimates that might be what is drive pg shares up.
and gross merchandise volume, again that's a total dollar value of merchandise sales that's $24.4 billion versus estimates of $24.1 billion so a slight beat there that's a really important number that analysts have been watching and number of active buyers are 170 million. that's in line with estimates as well another couple of points from the press release. e-bay also returned $2.7 billion in capital to shareholders through repurchases of its common stock and the 2017 gap results from continuing operations primarily driven by a $3.1 billion tax charge, primarily attributable to the enactment of the tax cuts and jobs act no doubt we'll at the time more color on that provisional tax charge, a significant one on the call as well as more color on the g and v numbers. >> a lot of companies are having sloppy quarters because of the tax call
5..% jump in global buyers e-bay in some way is trying to become amazon on retail side. >> amazon is going to help them become there was a deal last year that amazon did with nike they are going to make stores and push out on line sellers they will go to e-bay why do you think up there is not many tech stocks expected to grow earnings 10% this year. they are trading about a market multiple we talked about valuations with microsoft and facebook before. i think this is a name that literally has been forgotten, thrown out of the on line retail discussion. >> are you saying it deserves more respect >> i'll saying it is going to get it it was thrown out two years ago. yet it has performed well.
they have a balance sheet. buying back stock. >> announced a $6 billion share repurchase, with this market cat that's not insignature tant. 19 times forward earnings and that buy back. the stock should be value. >> some companies announce and it never do it they are doing it. stock is doing well after hours. still ahead, more after hours action facebook and microsoft obviously e-bay we just talked about. at&t and paypal also on the move we will bring you the latest details. those conference calls are getting underway you are watching "fast money" on cnbc, and we are first in business worldwide in the meantime, here's what else is coming up on "fast". get back in there at once and sell, sell -- >> volatility is back. and a top strategist at wells fargo says just deal with it what he says might have you pressing the buy button. he will be here to explain. plus -- >> what is going on? >> still confused about bitcoin?
the crypto trade can be about to get lit, as a new -- that's not even how you use that term a new wave of bitcoin investors getting ready to flood into the market bob pisani at the ny -- he knows how to get lit and has more on the crypto craze. >> you are dating yourself the cryptocurrency trade didn't dead more than 1 million people joined the wait list for robin hood crypto in the last few days commission free stack trading at robin hood last week announced it was rolling out free bitcoin and ethereum trading againing in february it will be available in california, massachusetts, missouri, montana, and new hampshire. but not in new york. robinhood would not give us an
exact launch date but trading could begin as season as tomorrow coin base, the leading u.s. marketplace for bitcoin trading right now. coin base we have an advantage since they have a license to trade in new york a major bitcoin trading hub. but robinhood says they will have dmigs free trading. coin base charges transaction fees based on when you are trading cryptocurrencies has become an issue and this may spark a new wave of interest the devil is in the details. critics have said robinhood may embed fees with a wide bid as spread we will keep on eye on that one. there is another reason why interests may be ticking up. square is going to allow payment in bitcoin customers are limit to $10,000 in bitcoin purchases a week through the app but there is no limit to the amount that can be sold however, users cannot send
bitcoin directly to others cash users at the same time. the service will not be available for customers in new york state n georgia, wim wim, or in hawaii according the square's wets. om line, several companies not in the crypto space are coming in trying to make trading simpler and cheaper. you can't help but think that's a positive. >> bob pisani thank you very much bk, this a new catalyst? >> i think it is a catalyst. i have talked about the wall of institutional money coming in. this is retail money coming in one of the reasons bitcoin has been so weak is a lot of the exchanges have not been opening new accounts there has been so much demand that they are overwhelmed. so as new money comes in just like in any market, just like in the stock market, that should be positive for it. a million people signing up for an app, if you are the ceo of a brokerage firm, robinhood just put you on notice. you have got to look at this asset class.
a million people in a week that's a big number. >> it's interesting to me because we have been reading a lot of stuff about blockchain technology and a lot of the smartest people that you read, they are cautioning people from buying -- they are cautioning retail people. if you don't read the white paper don't buy it what's going on here is simple it's like gambling on your iphone, that's what's going on because nobody real had he knows what's going on withest mo of the current cease. four on coin base, only one on square, one on the beinhood app. you are going to the one where there is the most assets there and you are speculating on price going up and down. to me that has a lot to do with it we are in a bull market. we talk about stocks all the time and being nervous at buying facebook up 50% at $188. you can buy something on your iphone that nobody knows which way it's going to go, but everyone got rich on it last year >> do you think we have ushered in a new era of volatility we will have a conversation about that later in the show
ultimately when this market starts -- traditional equity markets start being infused with volatility, people love trading crypto partly because it is a trader's paradise. the intraday moves, the lack of transparency, the lack of price servicery. >> but there is no headline that says facebook margins there, and there is nothing to compare anything to. >> how many people actually look at the margins >> we are professional traders we are looking at facebook margin but most people has no idea what their algorithm is or what the margins are they are big it because they think the price is is going to go higher. >> we asked you to send us your burning bitcoin questions for bk to answer in a special edition of crypto class. the first tweet is from robert he asks do you think bitcoin will rebound starting in february historically that seems to be the case >> i think it will a lot of it has to do with the chinese new year that's the historical standard i think infebruary we have a
nice base forming here >> next question, do you recommend bitcoin cash to your mother. >> i would recommend a basket of currencies to my mother. in fact, i do think she owns a basket of digital currencies i like bitcoin cash and bitcoin. don't say i love one or the other. i love you equally, just like kids. >> don't talk about his mother. >> the last question is on the sassy side by the sea shore. at the chief says quote maybe you should give us a quick tutorial of how to buy ripple at the top. a lot
of tweets about our ripple segment earlier this month. >> throwing shade. i bleed just like everybody else. >> i was on the desk that day. you were asked how to buy another currency that doesn't trade on coin base you talked about it, do you have to move bitcoin there? i have got your bat. i don't think that was in a call of buying xrp at that price. >> i will take my lumps when i'm
wrong. on that case -- that being said i would buy ripple right here. i'm long ripple. i'm long on the bund >> everybody here buys low and sells high another question what effect do you think lightning will have on the alt coins who has low fees. >> i think the lightning network could be bullish for bitcoin as you get more users and transactions if you want a fundamental catalyst for bitcoin in to 18 it is the lightning network. >> okay. there you go
still ahead, big night for big tech facebook and microsoft both on the move after hours microsoft call getting ready to kick off the facebook call well underway. don't forget, gene munster has been stuck on the red phone all hour we will get his thoughts, what he is hearing, comments from mark zkeerucrbg in a few minutes. much more on fast on a very busy night.
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welcome back to "fast money. shares of wynn resorts falling under pressure today the grown probe into sexual misconducted allegations against steve wynn heating up. let's go to contessa brewer in boston, massachusetts. >> i was at the public hearing for the massachusetts gaming commission today, brian. they reit rated they have broad authority to modify or revoke the gaming license
the license was awarded to wynn mass llc and a group of what they call qualifiers, individuals who have been vetted to partake in the gaming license. they include steve wynn. part of the process of qualifying is to answer whatever questions the commission has today the lead investigators told the commission that wynn resorts has now confirmed that there was this private settlement of $7.5 million and that they did not disclose it intentionally during the qualification process as urged by wynn counsel. the investigator says at this point given that they are going to go back and review the suitability of all the individual qualifiers, including steve wynn they are going to review the corporate action or the lack thereof. who knew what when sp why didn't they report now. we will report back on the corporate response to the allegation this is the public domain, and restrew the current situation and how it impacts the
financial situation of the company. they aurgeed the lead investigator to make the facts public. >> we are going to look in disfavor of keepings thing off the record the public has a right to know the people of massachusetts have a right to know what the hello health happened here. >> we just got a response in from wynn rerts. a spokesman tells me we respect the process yoit outlined by the massachusetts gaming kmoigs and will cooperate fully, our construction is on schedule with a 2019 opening and continues to create more than 4,000 local union trade jobs i asked commissioner today if he would consider those jobs in may going a final decision, and he says as for now those people should keep showing up to work every day. he also says they are going to be looking at the board as it stands now of wynn resorts and how it conducts itself in best conditions whether it's living up to its
fiduciary responsibility since they did not disclose the settlement, has the damage been done. >> it is a serious subject and a serious topic. from an equity perspective, the stock is down 17% in one week. still up year over year. >> started january 1, 16 traded up to 203 traded down to 62 today. round turn in 31 days, obviously most of which happened in the last four trading days trades at 18 times forward earnings the question is how much headline risk is still out there and how much has been priced i would submit that the company can survive this downturn. and i think you can buy the shares right here. >> why would you buy -- you are totally right in how you have assessed the chart this is now trading at three weeks ago at the end of the massive run to the stock the assets are what they are
steve wynn has lot of value to this enterprise. in terms of how this business has been run, the vision of some of the projects. but sum of the parts, this thing has got a back stop. >> what's the back stop, a buyout >> do you think that las vegas sands could come out, adelson and wynn friends, do you think they could rescue the company. >> i don't think they need to be marketed >> four times the market cap. >> lets be clear i think they would come drooling if the opportunity to buy these assets were there. i think there is an asset value here why try to figure this out tomorrow. >> let's look at facebook as we head to break. the stock is seeing a reversal after hours. it was down as much as 5% at one point. it is now up what was just said on the call that changed investors minds we are going to find out. and volatility is it here to stay is it back rmorheewrgo calling it t n no f the market and telling investors just to deal with it more details on that when "fast money" rolls on. s?
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he's one of those guys who always smells good. his 5 o'clock shadow is always at 5 o'clock. you like him. your mom says he's done really well for himself. he has stocks and bonds your dad wants to go fishing with him. your dad doesn't even like fishing. you like your brother-in-law. but you'd like him better if you made more money than he does. don't get mad at your brother-in-law. get e*trade it was another wild day for the markets. stocks, up, then reversed into the negative it would not be a story at all but given the last couple of years, a 1% move is the new 5% of mo. a new analyst says volatility is back but no worries he has brought a game plan of how to deal with it.
it is amazinamazing, with all d respect that what you are about to say that a 1% move is leading cnbc programs when three years ago it was a common occurrence now it's so rare what do we make of it? >> what do we make of it is volatility is coming back. we will have more spikes in volatility but we are not going to go to the elevated period. it is going to normalize what we are going to see is a reintroduction of the fed. last year the fed was a non-event. even though they were on a tightening cycle it was a non-event. and we think they were sucking volatility and risk out of the marketplace. now they are reintroducing volatility and risk. >> i may be quoting you back to you. somebody wrote recent that markets test new fed chairs. market shares are down in the first six months of almost every new fed chair's tenure do you think we are quote testing the fed? >> i think we will test the fed. i think there is a couple thing. when greenspan first started you
had the '87 crash shortly after he started that was a big deal. bernanke had to teal with the summer of '07. a lot of the chairmen they do get tested this time i don't think it will be any different but we are not expecting in the first six months of this year to see something that big we think it is a second half story n. tightening cycles what you see is peeking of growth, flattening of yield curves and multiples start to contract. >> i don't want the get too "options action," it is fridays at 5:30. >> highly rated show. >> in terms of volatility, are derivative book at some of the larger players set up in such a way that heightened volatility would be extraordinarily dangerous for them >> i talked to our derivative desk all the time talking about positioning and what people are doing. people are short volatility. if you get a big spike up -- the spike has to be maintained for a period of time you get one spike up, you will get a lot of people where it is
a sharp stick in the eye but it's not capitulation. if it stays that way, people have to rebalance. >> chris, if our viewers believe you and believe volatility is here to stay or at least will go up how do we make money off it? >> in a ton of ways. what we are telling people mainly is you now have morable to be tactical you have more ability to trade around positions for example, on monday we said we expected a market pullback of 2 to 3%. we got that in two days. no you can start putting money to work. with regard to positions that you want to get into, you can be more selective be more opportunistic. tons of ways to do it. >> chris harley, wells fargo securities a pleasure thanks for coming on "fast money. >> great. >> guys, what do you think volatility back -- i hate to say volatility back with a 1% move but that's where we are right now. 1% is the new 5%. >> the one thing the fed did in 2009 and 2010 with all of this was suck the volatility out.
that's what we've seen, a smooth up you run it is likely coming to an end in 2018 it doesn't mean the end of the world but it means you can be a bit more of a trader if you are more of a trader you are going to have a lot of fun this year. wait for the prices to come to you and be tactical. >> interest rates to me to me are extraordinary accommodative. >> even with the spike we've seen it's been quick. i know we are not high but -- >> the economy in the first quarter probably grew 375% around the world we have a 60% bund they are also on the move. it's global central banks, not just the fed it is more volatility. still ahead, facebook on the move after-hours 6% to 7% u-turn on facebook in st cplju aoue of minutes what was said on the call that has investors hitting the buy button more "fast money" right after this in central new york and the mohawk valley, which marks the start of our nation's first
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welcome back to "fast money. paypal down 3% on its earnings right now. visa set to report after the bell tomorrow. the options market is implying interesting moves. dan nathan what are you seeing >> it made a new all-time hey high in the last week. options implying a 3.5% move paypal had a higher implied move let's see where it opens tomorrow that quarter was not particularly -- there was nothing wrong with it. i suspect visa will show some of the same strength. to me when you have a stock up like that on a spike, could it come in a few bucks?
wow, what a trip the stock now higher after hours. let's find out what was said that sent shares of facebook reversing course, julia. i mean it was a big reversal. >> quite an about-face, brian. seemed to be a couple of different factors at play. we heard cfo david winters say the revenue yutd look continues to be strong they see several places to pursue wretches. they continue to expect to see the cop ex grow between 45 and 50% this year. we heard from sarl sandberg, coo of facebook. she reassured the changes to the news feed won't impact facebook's bottom line. >> we are not doing this to be positive or negative for revenue. we are doing it because it is the right thing for our community. but the impact it has on monetization is certainly not clearly negative. >> not clearly negative. about you the market saw that as
positive the shares up 3% mark zuckerberg, facebook ceo okay focused his comments on the company's ability to understand how its services are used, amplify the good and prevent the rm that. he says changes from last quarter saw fewer hours watched as a result of changes to video in the news feed zuckerberg is making other changes to improve users experience such as stories which are on track to become the most popular way to view content. of course in the security of the platform saying that growth rates will continue to decelerate as expected but they are pretty much on track. and also with the comments they made earlier, and a lot of focus there of course on the cop ex number and also of course on growth with all those changes to what we see in our news feed every day. >> julia boor citizen, thank
you. we have fame's gene munster. he has been patiently on that call what stuck out to you, buddy you were on the call for an hour and a half. >> it's been a long call they buried the good stuff in the middle of the call i think cheryl's comment about the monetization actually going up, and i want to translate what she was saying when she said not clearly negative they mentioned they already started to clean up the news feed in the u.s. they gave the numbers. 12% less time spent in the u.s but monetization actually creeped up in the u.s. now they haven't rolled these out over the whole globe that's why she said not clearly negative that is a huge topic in this story. i think she let people rest easy knowing that in fact reducing time can actually be good for monetization what a great combination. >> do you feel, gene, a bigger topic, that facebook has trouble
sort of telling people in plain english what it means, not clearly negative zuckerberg has been described as not the best communicator. do you think they are not getting their message to investors clearly enough not clearly negative, that's a good thing, right? >> i feel like it's more about them wanting to underpromise and overperform. they could have said something at the beginning on january 12th when they made the announcement that they have been testing and the monetization wasn't negatively impacted. they say this before with expenses, they say they are going to spent a boatload and then investors are surprised >> maybe they are nervous and optimistic because of everything going on politically around them. >> the 45 to 60% is their expectation for the next year
forron ex growth, unchanged from what they said on january 12th not a big surprise they are spending a lot of that to clean up the site, reduce fake news. there wasn't as much surprise about that i think it's foundational around that comment from sandberg >> gene, i'm curious f the only issue was that this change was going to reduce monetization, reduce engagement, all of those things, does it halloween it's all clear now for facebook nothing we have to worry about >> it is a social rm plo so there is always something this is not like google where it is the oxygen of the internet or amazon which has this massive infrastructure the nature of facebook's business, there needs to be anxiety. but for the next quarters you should feel good, core businesses are doing fine. big opportunities on messenger and what's app and innocuous that they haven't even started to make money from i think this is a big deal, the fact they have tested this, and that it's work out in their favor. >> before we go more around the
horn here, can you grade the quarter for us, gene >> before cheryl's comment i would have said a b plus but given what she just said i'm going to give it a solid a. >> a solid a all right. gene munster, professor -- i wish i had more teachers like you, gene. thank you very much. dan? >> interestingly we hit on this he willier, the next leg of the story is how do they monetize messenger and what's app aol instant messenger shut down last month it's not clear how you monetize it maybe it's payments. then do he have they have to make a acquisition, buy paypal or something like that to get this going because they are in a multihorse race amazon has a pay button. apple as apple pay right. google has wallet. >> does anybody dispute that if it's not the greatest the instagram purchase while criticized by some at the time may go down as the greatest
technology deal of all time. >> you tube. >> throw that in there >> you tube is better is this. >> if we are comparing two you tube was a better purchase that's not to knock on instagram, but clearly, u tube. >> the prejoshua tree you tube. >> i don't know anything about joshua -- >> brian >> what did you say? >> i said, before you bought a joke book. and i'll say it again. >> anyway. facebook >> it is time now for our final trade. we will go around the horn first to you guy adami. >> starting here amd. we talked about this for a while. look at the quarter. crypto, the gamers are involved in amd i liked ibb on monday i like it more now, down 3 dh from now. >> square. sq >> guys i appreciate you being so nice to he moo. >> tim seymour down there. >> i appreciate you watching "fast money. i have got 38 second to burn
here. >> it's nice to see we got a rise out of brian. >> what's your final trade, pal. >> let's talk about facebook, at 24 times adjusted p/e. that's the best value in mega tech cap my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach so call me at 1-800-743-cnbc or tweet me @jimcramer. okay we're back we have returned to a world of volatili w